Keir Starmer is set to convene a meeting with top executives from the energy and shipping sectors at 10 Downing Street to address the economic repercussions of the conflict involving Iran.
The Prime Minister will lead discussions on Monday regarding the escalating costs resulting from Iran’s blockade of the crucial Strait of Hormuz, a significant passage for approximately one-fifth of the global oil and gas trade. Notable industry leaders from companies such as Shell, BP, Centrica, Equinor, Maersk, and CMA, alongside representatives from financial institutions like HSBC, Goldman Sachs, and Lloyd’s of London, are expected to participate in the roundtable.
The gathering will also receive an update on the security situation in the region from Major General Richard Cantrill, the UK’s maritime operations commander.
The ongoing conflict between the US, Israel, and Iran has led to a substantial surge in global energy prices and raised concerns about potential fuel shortages. The blockade could also disrupt food supplies due to its impact on the transport of fertilizers from Gulf nations.
Efforts are underway among allied nations to devise strategies for reopening the strait, which lies between Iran and the Arabian Peninsula. Despite calls from Donald Trump for allies to deploy warships to the region, Western countries have thus far declined to comply.
To prepare for potential assistance in clearing the Strait of Hormuz, the Royal Navy’s RFA Lyme Bay is being equipped with minesweeping drones. However, any deployment is unlikely until the security situation stabilizes, as the current threat posed by Iranian drones and missiles is considered too high.
While decisions are pending on the deployment of these capabilities, the move is a precautionary measure to provide the government with options should intervention be necessary to restore normal merchant shipping operations.
As the conflict enters its fifth week, government officials are focused on safeguarding consumers from the impact of shortages and price surges.
Education Secretary Bridget Phillipson sought to allay concerns about petrol shortages, urging drivers to maintain their usual routines ahead of the upcoming Easter holiday. She emphasized that production and supply are being maintained, citing reassurances from industry bodies and motoring organizations.
Additionally, Chancellor Rachel Reeves is scheduled to meet with finance ministers and central bank governors to advocate for coordinated G7 actions aimed at enhancing supply chain resilience, supporting market stability, and safeguarding economic recovery.
